Bank of China announces to raise 60 bln yuan through rights issue

21:26, July 02, 2010      

Email | Print | Subscribe | Comments | Forum 

Bank of China, one of the country's "big four" State-owned banks listed in both Hong Kong and Shanghai, announced late Friday it expected to raise no more than 60 billion yuan (8.86 billion U.S. dollars) through share rights issuance.

In a statement filed to the Hong Kong stock exchange, Bank of China said it was seeking the approval of its shareholders for the rights issue "in order to strengthen the capital base of the Bank and to improve the capital adequacy ratio of the Bank".

On the assumption of up to 1.1 rights shares for every 10 existing shares, no more than 27.922 billion rights shares in total -- comprising no more than 19.56 billion A rights shares and no more than 8.362 billion H rights shares -- will be issued, said the statement.

A rights shares refer to Bank of China shares listed in the Shanghai stock exchange, while H rights shares refer to those listed in Hong Kong.

"The gross proceeds to be raised from the rights issue will be no more than 60 billion yuan. The final amount of gross proceeds shall be determined by the actual subscription price and number of the rights shares to be issued at the time of the rights issue," said the statement.

The Beijing-based bank said the A rights shares would be sold by selling agents on behalf of the bank, and H rights shares would be fully underwritten.

The subscription price will not be lower than the bank's most recent net asset value per share, which stood at 2.03 yuan (30 U.S. cents) on Dec. 31 of 2009, said the bank.

On Friday, closing price of Bank of China in Shanghai was 3.39 yuan (50 U.S. cents) while its closing price in Hong Kong was 3.97 HK dollars (51 U.S. cents).



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
  • Photo taken on Sept. 29, 2011 shows strong wind blows trees in Sanya, south China's Hainan Province. Typhoon Nesat heads towards south China and is moving at an average wind speed of 20 km per hour toward the west coast of China's Guangdong Province. (Xinhua/Hou Jiansen)
  • A fallen tree is seen on a road in Qionghai, south China's Hainan Province, Sept. 29, 2011. Typhoon Nesat was predicted to land in Hainan later Thursday, bringing heavy rainfalls to the island. (Xinhua/Meng Zhongde)
  • Arash Kamalvand (L) of Iran spikes the ball during the semifinal against South Korea at the 16th Asian Men's Volleyball Championship in Tehran, Iran, Sept. 28, 2011. Iran won 3-1 to advance to the final. (Xinhua/Ahmad Halabisaz)
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
Hot Forum Discussion